Being an ‘Intermodel Hub’; Will Create an Impact of 80 Billion Dollars

Being An Intermodal Hub

Stating that the demand for intermodel has increased more than 10 times in the last 10 years, TIRPORT Chairman of the Board Dr. Akın Arslan said, “Turkey can turn into the most strategic hub of intermodal traffic in the Central Logistics Corridor. In 5 years, it can generate revenue of more than 80 billion dollars from the traffic on the north-south, east-west axis.

Akin Arslan

TIRPORT Chairman of the Board Dr. Akın Arslan made evaluations on the Russia-Ukraine war, digitalization, intermodal transportation, digital networks in transportation and developments in the supply chain. Arslan said that the Ukraine-Russia War caused great damage to the trade between Europe and Russia and the Northern Logistics Corridor stretching from China to Europe. Arslan stated that even if the war ends with a compromise, it will take at least 10 years for the damaged logistics axles to be repaired, for the psychology to recover and for the new balances to settle. Land and railway lines extending to Europe via Azerbaijan, Iran, Georgia and container sea lines coming through Samsun, İskenderun and Mersin can reach Europe very quickly via Turkey. Likewise, all logistics corridors from the Mediterranean, the Black Sea and Europe to Russia pass through Turkey,” he said.

Emphasizing that the known and customary logistics management will continue to change radically, Arslan noted that digital technologies that can produce real-time, location-based, smart logistics solutions for their customers and support all intermodal solutions within the same platform will come to the fore. Arslan said: “Digital networks and platforms such as TIRPORT, which allow instant monitoring of the cargo from the factory/warehouse to all delivery and customs clearance processes, will make a difference and will be preferred more and more for speed, cost and optimization every day. The transportation sector, like Turkey, whose individual truck ownership is over 80%, will meet with accurate and fast cargo with these technologies; payment, transmission and approval of official documents, etc. will not grapple with uncertainties, capacity utilization will increase, and the welfare of the transporters will increase.

TRANSIT FREIGHT TRAFFIC WILL INCREASED MORE THAN 10 TIMES

Pointing out that the transit freight traffic over Turkey may increase more than 10 times in the next 5 years, Dr. Akın Arslan said, “South Asian and Chinese companies that make mass production and sell to European-African markets may prefer Turkey as their main production base for their production and semi-finished product assembly. Because it can deliver a container produced in China, which can only be sent to Europe in 8-12 weeks, at half the price, to all parts of Europe in just 1 week. This is a great optimization and power. If Turkey can make good use of this opportunity, it can reach an economic size of over 2.5 trillion dollars and an income of over 25 thousand dollars per person within 10 years.

DIGITAL LOGISTICS NETWORKS ACCELERATE INTERMODAL SOLUTIONS

Dr. Akın Arslan said that with the opportunities provided by developing technologies, intermodal solutions integrating land-sea-air and railways started to come to the fore. Pointing out that the intermodal demands in the world have increased more than 10 times in the last 10 years, Arslan said, “Containers that could not reach Europe in 12 weeks from China were able to reach Europe in 2 weeks with pilot intermodal solutions produced. In a similar logic, with the supply chain crisis, container movement over the Caspian Sea has increased 12 times in the last 2 years. Artificial intelligence supported solutions, rapidly developing digital platforms such as Tırport, Convoy, Sennder, Cogoport, Flexport have greatly improved reservation and optimization power and accessibility.

WORLD ECONOMY REACHED $100 TRILLION

Stating that the world population, which was 3.6 billion in 1970, doubled in 50 years and reached approximately 7.8 billion, Dr. Akın Arslan said that the global economic size increased more than 27 times in the same period. Arslan also stated that the size of the world economy, which was 3.4 trillion dollars in the same period, reached 94 trillion dollars at the end of 2021, and that it will exceed 100 trillion dollars at the end of 2022, despite the global recession according to IMF expectations.

Emphasizing the importance of managing and organizing power in the globalizing production and supply chain, Arslan said, “In the rapidly globalizing world for the last 40 years, instead of the concept of “domestic and national production”; it became important to be the manager of that power, to be the employer, to be the organizer. The concept of the company that owns the ‘Brand’, ‘Know-how’ and İş’ has come to the fore and continues to emerge. Who shares the wealth of their income, who is working for whom and which brand is the main issue. As companies in Turkey, we need to design global businesses and be among the business managers and employers in the global market. Now, having a global business does not necessarily mean owning a factory. Today, thousands of software, artificial intelligence, data and analytics companies in the world are now suppliers of leading brands. In summary, as Turkey, we should be among those who design and manage global businesses in the $100 trillion world economy.” said.

SUPPLY PROCESSES OF GLOBAL COMPANIES HAVE ALSO GLOBALIZED

Stating that globalization is possible by designing products and services that will serve the global market with a global perspective, Tırport President Dr. Akin Arslan said:

“Marketplaces such as Amazon, Alibaba, eBay, and Aliexpress are shaping the new world. Global new generation Marketplaces such as Uber, Flexe, AirBnb, Convoy, Booking operate in hundreds of countries. Most of us don’t even know which country’s business anymore. Walmart, which has the largest number of employees and the largest turnover in the world, is looking for ways to compete with Amazon. According to Statica’s data; In 2021, Walmart made the world’s largest turnover with 573 billion dollars. Amazon followed with $470 billion. Saudi Aramco, on the other hand, took the third place with 401 billion dollars. The world’s most valuable company, Apple, was able to generate a turnover of 366 billion dollars in 2021. Despite its lower turnover than the others, with a value of $ 2.4 trillion, Apple makes it the most valuable company in the world. As Turkey, we must take out dozens of unicorns from Turkey by using our position in this geography that connects Asia, Europe and Africa, correctly and on time. We need to rapidly increase the number of examples such as Trendyol, Getir, Hepsiburada, Getir, Peak Games, Dream Games, Insider, which have achieved this in Turkey and crossed the threshold of unicorns, some of which are even decacorn. As Tirport, we know these facts very well and work hard. There is no production without logistics, the goods produced cannot reach the end user without logistics. The goods you cannot send to your customer are not yours. With our intermodal solutions integrating land, sea, air and railways and our artificial-intelligence supported LTL optimizations, we are a part of more than 1.5 million truck owners living in this geography. We aim to be the number one employer and reach a global turnover of over 5 billion dollars per year in the next 5 years.” he said.

Dr, Akın Arslan said that the rapid increase in the world population in the last 50 years has brought along a serious increase in production. Stating that with the opening of China’s closed doors to the west, cheap labor, raw materials and cheap energy costs have brought world production to China and South Asian countries, especially since the beginning of the 90s, according to 2021 data; He stated that China alone has become the producer of 30% of the total production in the world. Arslan stated that when other South Asian countries are included, this rate reaches almost 45% and that now big brands work with thousands of different suppliers around the world.

Arslan listed the examples for this as follows;

  • Boeing and Airbus, the world’s two largest passenger aircraft manufacturers, have more than 12,000 first-tier suppliers in over 80 countries.
  • The F-35, the world’s most expensive and advanced fighter aircraft, produced by Lockheed Martin of the USA, has more than 1,500 suppliers in 11 countries. What is striking is that 1/3 of the suppliers of this aircraft, worth approximately 120-150 million dollars, are now software suppliers.
  • The F-35, the world’s most expensive and advanced fighter aircraft, produced by Lockheed Martin of the USA, has more than 1,500 suppliers in 11 countries. What is striking is that 1/3 of the suppliers of this aircraft, worth approximately 120-150 million dollars, are now software suppliers.
  • Global automobile production, which was up to 97 million annually in 2018, declined to 78 million in 2020 due to the Pandemic and supply problems, and closed 2021 with 80 million. Toyota, the world’s largest automaker, produced about 9.2 million cars last year. It is followed by VW with 8.9 million units.
  • While a Toyota car with a conventional internal combustion engine consists of 30,000 stand-alone parts, a Tesla Model 3 with an electric motor has only 10 thousand parts. This is actually a revolution. More than 2,000 licensed parts are produced by 300 suppliers from more than 10 countries for Tesla’s Model S. 75% of these parts are produced in the USA, Canada and Mexico.
  • Renault has 3,500 suppliers and Volvo has 7650 suppliers in 17 countries. Audi has 14 thousand, Daimler Benz has 60 thousand, BMW has 12 thousand suppliers in 70 countries, VW has more than 40 thousand. Toyota supports 60 thousand suppliers from over 50 countries.
  • An internal combustion engine has over 200 moving parts, while an electric motor has only 17 moving parts. It’s an amazing experience from an engineering point of view.
  • Apple has 716 suppliers, including 334 in China, 131 in Japan, 73 in the US, 36 in Taiwan, 34 in South Korea and 108 in other countries. .
  • Global electronics giants Samsung have 2,500 suppliers and LG has 700 suppliers. Bosch has 23 thousand suppliers in 80 countries and Arçelik has more than 2.000 suppliers in 60 countries.

‘WE SHOULD RELEASE TENS OF UNICORN’

Stating that globalization is possible by designing products and services with a global perspective, Dr. Akın Arslan said: “Marketplaces such as Amazon, Alibaba, eBay and Aliexpress are shaping the new world. Global new generation marketplaces such as Uber, Flexe, AirBnb, Convoy, Booking operate in hundreds of countries. Most of us don’t even know which country’s business anymore. Walbart, which has the largest number of employees and the largest turnover in the world, is looking for ways to compete with Amazon. According to Statica data; In 2021, Walmart made the world’s largest turnover with 573 billion dollars. Amazon followed with $470 billion. Saudi Aramco, on the other hand, took the third place with 401 billion dollars. The world’s most valuable company, Apple, was able to generate a turnover of 366 billion dollars in 2021. Despite its lower turnover than the others, with a value of $ 2.4 trillion, Apple makes it the most valuable company in the world. As Turkey, we must take out unicorns from Turkey by using our position correctly and on time in this geography that connects Asia, Europe and Africa. In Turkey, we need to rapidly increase the number of examples such as Trendyol, Getir, Hepsiburada, Peak Games, Dream Games, Insider, which have achieved this and crossed the threshold of unicorns, some of which are even decacorn.

As TIRPORT, we know these facts very well and work hard. There is no production without logistics, the goods produced cannot reach the end user without logistics. The goods you cannot send to your customer are not yours. With our intermodal solutions integrating land, sea, air and railways, and our artificial-intelligence supported LTL optimizations, we manage to manage more than 30 thousand FTL transports per day on the axis stretching from Europe to China and Africa, with over 1.5 million truck owners living in this geography. We aim to be the number one employer of the company and reach a global turnover of more than 5 billion dollars per year in the next 5 years”.